Indonesia eyes new capital as Jakarta bursts at seams

August 27, 2010, 3:15am

JONGGOL, Indonesia (Reuters) - A mere pinprick on the map of Java, Jonggol’s cluster of tiny red-roofed houses set among banana groves and shimmering waterlogged rice fields may in years to come be destined for greater things.

Indonesia’s capital, Jakarta, population 9.59 million, is overcrowded, set in an earthquake zone, prone to flooding, and crippled by inadequate infrastructure.

Now Jonggol is one of several sites being considered as a new administrative seat in a bid to relieve Jakarta’s congestion, but at a potential cost of billions of dollars.

This sudden thrust into the limelight appeals to some local residents in Jonggol, where few buildings exceed one storey and the nearest thing to a skyscraper is four floors high.

‘’Now you can call this a village. I hope they will transform it into a city,’’ said local resident Annur. ‘’I don’t mind if this becomes the capital, it would be more lively and beautiful.’’

For years, Indonesia’s growth has lagged that of China and India, held in check by poor infrastructure, endemic corruption, and ample red tape.

President Susilo Bambang Yudhoyono has floated the idea of moving part of the capital in recent months, and earlier this month proposed increasing infrastructure spending, with plans to build 14 new airports as well as roads and railways, to lure foreign investment and boost growth.

‘’The government takes this idea seriously,’’ Velix Wanggai, an advisor to Yudhoyono, told Reuters.

‘’The president considers it normal to look at moving the capital because of Jakarta’s urban problems, the risk of disaster, and heavy environmental toll.’’

As Southeast Asia’s largest economy and a G20 member, Indonesia is keen to raise its international profile.

It has ambitions to join the emerging market elite of BRIC nations Brazil, Russia, India and China, is eyeing an investment-grade credit rating, and even wants to lop a few zeros off its currency so that everyday transactions no longer seem so third world, involving millions or billions of rupiah.

A new capital could -- as was the case with Brasilia, studded with Oscar Niemeyers’ architecture -- be an emblem of national coming-of-age with careful urban planning and new infrastructure.

To get a sense of Jakarta’s infrastructural shortcomings, start at Soekarno-Hatta airport, Indonesia’s busiest. At peak times the queues at the visa and immigration counters snake back several hundred metres, and it can take up to three hours for passengers to be reunited with their luggage.